KUALA LUMPUR: Dufu Technology Corp Bhd
is confident that the toughest phase is now behind it and is committed to seizing emerging opportunities to cultivate sustained growth for the group.
Dufu noted that in 2023, the market cycle for hard disk drives (HDD) reached its lowest point.
“As we advance through the fourth quarter of 2024, our group is navigating the tail end of an unprecedented downturn in the storage market. However, within our key operational domains - precision machining of HDD and production of sheet metal and stamping equipment and components - we are witnessing a modest increase in demand,” it said in the notes accompanying its financial results.
Dufu believed that global semiconductor sales are picking up and, coupled with a resurgence in the memory sector, suggest the potential onset of a new growth cycle, especially among local manufacturers who typically lag behind global semiconductor players.
“This positive momentum is supported by the conclusion of inventory adjustments. The recent heightened demand for electronics and generative AI-related applications will ultimately benefit the storage and memory sector. However, while we anticipate that generative A.I. will lead to increased storage demand, we think this trend will take time to materialise,” it added.
In the third quarter ended Sept 30 (3Q24), the HDD maker reported a net loss of RM3.2mil, or a loss per share of 0.60 sen.
In contrast, the same quarter last year saw a net profit of RM3.4mil, with earnings per share also at 0.60 sen.
“In the current financial quarter, our results were notably affected by the recent appreciation of ringgit against the US dollar (USD). This is particularly significant, as approximately 90% of the group's revenue is derived in USD.
“As such, any substantial fluctuations between the USD and ringgit are likely to exert a considerable influence on the group's financial performance for the fiscal year ending Dec 31, 2024,” Dufu said.
For the first nine months, Dufu posted a net profit of RM9.6mil, down 45% from RM17.6mil, while revenue expanded 6.6% to RM188.7mil against RM177.1mil achieved last year.
